Rules of allowed account debit balance

This document describes the terms of acquiring and maintaining an allowed
account debit balance at Dropped.pl.

Using the debit balance

The site owner may grant the user a possibility to maintain a debit balance
on their account, within limits set by the site owner. All payable operations on
domains and other service purchases can be then performed on user's account
without the need to maintain a positive cash balance, up to received debit
limit.

In order to grant the user a possibility to use a debit balance, the user
must submit domain names to the site owner as collateral for the debit. The site
owner assesses the value of each domain individually and grants a portion of
debit balance corresponding to this domain according to this assessment.

The site owner can reject accepting any domain as collateral or granting the
user a debit balance.

The site owner can change the domain value assessment no more than by 25% per month and 50% per 6 months,
providing a 14 day notice to the user.

Debit balance collateral

When a domain is used as a debit balance collateral, the following domain
operations are blocked:

Obtaining domain AuthInfo.

Transfer of the domain to another account.

Starting a domain auction.

Starting an Escrow or rental transaction for the domain.

Setting a Buy It Now price for the domain.

The site owner may also temporarily transfer the domain to their ownership
when the domain is acting as collateral. The user accepts such ownership
transfer when presenting the domain as collateral.

The user is obliged to renew the domain validity when they are acting as
collateral. In case of domain expiration or removal from user account by other
means, the allowed debit balance will be reduced by value assessment of this
domain.

Fees for using debit balance

For opening and using the allowed debit balance, fees will be charged on
user account according to price list.

Collateral foreclosure

The site owner is allowed to foreclose in the domains acting as collateral in
any of the following cases:

Due to domain expiration or removal from user's account, the negative
balance on user's account will fall below 125% of allowed debit balance.

After foreclosing on the domains, they will be sold on an auction. Funds
obtained from selling domains will be credited to the user's account after
deducting the fees for domain selling and domain foreclosure according to the
price list.
The site owner may decide freely which domains will
be auctioned and when, up to obtaining a positive balance on user's account. The
allowed debit balance on user's account will be decreased by the value
assessment associated with foreclosed domains.

Resignation from debit balance

The user may decrease or eliminate their allowed debit balance by removing
chosen domains from collateral. Allowed debit balance will be reduced by the
value assessment associated with the domains. Reducing allowed debit balance is
possible only up to the current negative balance on the account.